Australian broker PSC Insurance Group has reached an agreement to buy 100% of the share capital of Lloyd’s broker Paragon International for a base consideration of £42m ($52.3m).
Founded in 1996, Paragon specialises in professional and financial lines. It has a workforce of more than 90 employees. Paragon generates more than 60% of revenue from the US wholesale market.
Under the terms of the deal, the final amount paid will be based on Paragon’s EBITDA this year and next year.
To collect the fund for acquisition, PSC has raised a total of £19.5m by placing its 13,461,538 additional shares with institutional investors.
The latest transaction follows the $33.4m acquisition of Shepparton-based Griffiths Goodall by PSC Insurance earlier this month.
Commenting on the deal, PSC Insurance managing director Tony Robinson said: “The acquisition of Paragon will greatly add to the scale and expertise within our UK businesses and we will enhance our position as a leading Lloyd’s broker providing services to US insurance brokers.
“With the anticipated completion of the acquisitions of Griffiths Goodall and Paragon, the PSC Group will control in excess of A$1.5bn ($1.04bn) in premiums, making us an increasingly important participant in our key markets.”
The transaction is subject to approval from the UK Financial Conduct Authority (FCA).